The One Trick to Designing a Token Sale – Don’t Be To Smart

November 2017
By Sam
Posted: Updated:
1 Comment

I’m not the smartest guy. I got a 2.2 at Uni, I ended up trading for a living. I’m not writing code (yet) or doing something else which is super technical. I’m pretty easy to understand.

However, since dipping my toes into the ICO market, I’ve really come to see that just because your smart, it doesn’t mean you can design a successful token sale. I’ve seen everything, volume bonuses, lockups, bonuses on bonuses, timed countdowns, etc. To be honest, it’s all marketing tricks. None of it matters and it’s just hot air.

The only thing that matters is one thing. Time.

If you come in early, you get a bonus*. I preface this by saying that the difference between rounds needs to be long enough to actually warrant giving a bonus. If I fund a project 2 months before it goes to ICO, I’d like to receive more tokens for taking the risk the project didn’t pull and Enigma and screw me over. If only a few days pass between rounds, then I shouldn’t get anything at all.

My beliefs come from options trading. The most value is to be had 30-45 days + out. Anything closer and the value rapidly drops to 0. When there is only 7 days left on an expiring contract, the majority of all of the value has burned off. The same is true for ICOs.

Other than that, you don’t need any thing. Plan for the worst. If you design your ICO to give the most bonus in the first day, you’re going to lose customers after that. They won’t want to come in at a higher pice. More so, your going to be stuck at that raise for the entirety of the ICO and never move much past that. If you had a flat rate you could just run the thing for a month and offer the same rate to those who you are paying top dollar marketing for.

Don’t be like AION with their TRS.

Don’t try to have your ICO after your token is launched and the price is much lower.

Don’t keep raising prices like SALT and screw those who invested last.

Make it simple, keep it fair. 

The best example of this I can give is Utrust. They had a flat rate, a super small seed round and were super successful. Nuno did a great job with it.

Don’t be so smart. Money is dumb. So design easy to understand token sales. If you can’t tell it to me in 10 seconds its too complicated.

If you have questions or want a dumb person like me to review your ICO token structure, just call.

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One Comment
  1. M / February 21, 2018 at 3:39 pm /Reply

    Absolutely agree! Nice post

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